Financial Crime World

Tuvalu Strengthens Anti-Money Laundering and Combating the Financing of Terrorism Efforts

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Tuvalu has taken significant steps to enhance its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework by adopting recommendations from the Financial Action Task Force (FATF).

Strengthening AML/CFT Regime

In 2013, Tuvalu agreed to amend its AML/CFT regulations to ensure that law enforcement agencies can access necessary information to combat financial crimes. This amendment aimed to prevent money laundering and terrorist financing by clarifying the provision of mutual legal assistance.

Implementing FATF Recommendations

Since then, Tuvalu has continued to implement FATF recommendations to address emerging threats and strengthen its AML/CFT framework. Some key developments include:

  • Revised Interpretive Note to Recommendation R.5: Tuvalu revised its note in 2015 to clarify that countries must criminalize financing travel for individuals who intend to participate in or support terrorist activities.
  • Revisions to Recommendations R.8 and INR.8: Tuvalu revised these recommendations in 2015 to clarify the subset of non-profit organizations (NPOs) subject to supervision and monitoring, aligning with the FATF Typologies Report on Risk of Terrorist Abuse in Non-Profit Organizations.
  • Revised Recommendation R.1 and Interpretive Note: Tuvalu revised its recommendation in 2020 to require countries, financial institutions, and designated non-financial businesses and professions (DNFBPs) to identify and assess risks related to proliferation financing.

Recent Developments

In recent FATF plenaries, Tuvalu has adopted further revisions to its AML/CFT framework. Some notable developments include:

  • Revised Glossary definition of “designated categories of offences”: In 2021, Tuvalu clarified the types of environmental crimes that fall within this category.
  • Revisions to Recommendations R.24 and INR.24, as well as additions to the Glossary definitions: In 2022, Tuvalu introduced new definitions such as “nominator” and “nominee shareholder or director” to strengthen its standards on beneficial ownership of legal persons.
  • Revisions to Recommendations R.4, 30, 31, 38, and INR.4, 30, 38, and 40, as well as the Glossary definitions related to asset recovery: In 2023, Tuvalu adopted further revisions to its AML/CFT framework.

Commitment to International Standards

These developments demonstrate Tuvalu’s commitment to enhancing its AML/CFT regime and aligning it with international standards. By strengthening its AML/CFT framework, Tuvalu aims to prevent and detect financial crimes, protect the integrity of its financial system, and promote a more secure and stable economic environment.